Lic deduction under 80c
This query is : Resolved
27 July 2016
I have two LIc policies One on my name & the other on my wife's name. My wife(housewife) also files income tax returns under income from other sources.
Can i use both lics in my return as deduction u/s 80C as i am paying the premium amount. OR i should show only in my wife's return.
Can i use both lics in my return as deduction u/s 80C as i am paying the premium amount. OR i should show only in my wife's return.
27 July 2016
Premium on both polices may be taken in your case.
27 July 2016
ok tnq so i can take both my premium 7 my wife's premium into my return as 80 C
02 August 2024
Under Section 80C of the Income Tax Act, you can claim a deduction for premiums paid on LIC policies. Here’s how you can handle the situation with two LIC policies:
### **Eligibility for Deduction under Section 80C**
1. **LIC Policies**:
- **Premium Payment**: The premium paid for LIC policies is eligible for deduction under Section 80C of the Income Tax Act.
- **Policy Holder and Premium Payer**: The deduction can be claimed by the person who is paying the premium, irrespective of who is the policyholder.
### **How to Claim the Deduction**
1. **Premium Paid on Policies in Your Name**:
- Since you are paying the premium for the LIC policies taken out in your name, you can claim the deduction for the full amount of the premium under Section 80C in your tax return.
2. **Premium Paid on Policies in Your Wife’s Name**:
- Even though the policy is in your wife’s name, you can still claim the deduction if you are paying the premium. You can claim the deduction in your return.
### **Specific Scenarios**:
- **For Your Policy**: Claim the entire premium paid on the LIC policy in your name as a deduction under Section 80C.
- **For Your Wife’s Policy**: Since you are paying the premium for the policy in your wife’s name, you can also claim this premium in your return under Section 80C.
### **Summary**
- You can claim the deduction for both LIC policies in your income tax return under Section 80C, provided you are the one paying the premiums. There is no need to show the premiums in your wife’s return if you are already claiming them.
Make sure to retain the necessary documentation (e.g., policy receipts, premium payment receipts) as proof of payment and to substantiate your claim in case of any scrutiny by the tax authorities.
### **Eligibility for Deduction under Section 80C**
1. **LIC Policies**:
- **Premium Payment**: The premium paid for LIC policies is eligible for deduction under Section 80C of the Income Tax Act.
- **Policy Holder and Premium Payer**: The deduction can be claimed by the person who is paying the premium, irrespective of who is the policyholder.
### **How to Claim the Deduction**
1. **Premium Paid on Policies in Your Name**:
- Since you are paying the premium for the LIC policies taken out in your name, you can claim the deduction for the full amount of the premium under Section 80C in your tax return.
2. **Premium Paid on Policies in Your Wife’s Name**:
- Even though the policy is in your wife’s name, you can still claim the deduction if you are paying the premium. You can claim the deduction in your return.
### **Specific Scenarios**:
- **For Your Policy**: Claim the entire premium paid on the LIC policy in your name as a deduction under Section 80C.
- **For Your Wife’s Policy**: Since you are paying the premium for the policy in your wife’s name, you can also claim this premium in your return under Section 80C.
### **Summary**
- You can claim the deduction for both LIC policies in your income tax return under Section 80C, provided you are the one paying the premiums. There is no need to show the premiums in your wife’s return if you are already claiming them.
Make sure to retain the necessary documentation (e.g., policy receipts, premium payment receipts) as proof of payment and to substantiate your claim in case of any scrutiny by the tax authorities.
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